Purchasing a hotel or a guest house is a life-long dream for many but before you jump in head first there are a couple of points to consider to help make the numbers stack up in your favour. Dodd & Co are here to help!
So, what can we do for you?
- Provide expert knowledge helping you to understand the seller's accounts, what profits you can expect and cash flow forecasts to create your business plan.
- Guide you through the business setup, ensuring the best tax relief and structure. Including looking at VAT registration, how trade levels sit in comparison to the VAT threshold and your 'Year End'.
- Offer advice on apportionment on purchase - whether the seller has put forward any initial indication of division of the value between goodwill, property, furniture/moveable’s (the beds etc) and integral features, and also how long the current owners have been in the property. This is a very complicated area, and one which has gone through changes in recent years, meaning that both buyers and sellers could miss out on tax relief – and there is no better position as a buyer than being able to save both you and the seller some tax!
- Complete setup with advice on the best bookkeeping options to make sure you record your business transactions in a way that complies with HMRC requirements, but also allows you to monitor your business as you go. There are many options available but the key is getting it to work for you. Check out our systems & technology page here.
For advice and assistance when purchasing a hotel or guesthouse please contact Stuart Bell or Jackie Kirsopp.
